$5,000 Investment in Cards: Best Strategy?

Mintacular · June 18, 2009 1:42AM

If you had $5,000 to invest in cards today but had to pay it back in a short-time period (3 mos.) with 10% interest and you are also wanting to make $1K on your investment. In short, turning $5K into $6.5K....Which of the following strategies would you pursue?

1) Buy ungraded high grade vintage and submit the best to PSA
2) Buy lots and and break them down and sell as singles
3) Buy lots and singles and piece together a vintage set
4) Buy and break some unopened wax/packs from a trustworthy seller
5) Other options I'm not considering

Assume you have the time to list, research, bid, advertise, etc. and that your purchases are for products that have a history of maintaining market value. Thank you for your responses. -Pat

MrVintage · June 18, 2009 1:44AM

Buy a big lot or collection and break it down.

justmichael · June 18, 2009 1:51AM

The best strategy is to not do it at all.Some could pull this off but I fear you could not based on the newbie questions you ask each day.Learn more about your hobby before attempting this.
Mike

swartz1 · June 18, 2009 1:51AM

Go to the OTB...

Track - Monticello

Do and $1 Exacta Box 1-2-3...on races 1 - 10 ($60)

You are welcome...

Yankees001 · June 18, 2009 1:54AM

Easy. I did this back in 2001.

1) Buy out a dealer that is going out of buisness.

2) Break the entire hoard down, throw all the commons in monster boxes (1980-85 and 1986-1994 and 1995-Now.) Liquidate them on ebay ($Auction, $15, $10)

3) Pre-1980 commomns break down in to years. Sell each year as lots.

4) Break down all the stars you find. Sell the modern stars cards in their lots, you get the point.

5) Sell the Higher priced cards.

KEEP ANY THING YOU PERSONALLY LIKE.

In 2 months I turned $600 in to over $2500. The dealer had them in storage for over 5 years, never searched.

Take the hoard of cards.

Dave

TNP777 · June 18, 2009 2:04AM

Why don't you write an article and tell us how you would do it. Given your vast hobby knowledge, that should be easy to whip up. By the way, since I don't read every thread I must have missed your update. Can you post the link to the story you told the board you were going to do?

Mintacular · June 18, 2009 2:12AM

"When you know a thing, to hold that you know it, and when you do not know a thing, to allow that you do not know it - this is knowledge."--Confucious

I have my own ideas about how this can be done but as a relative newbie who reengaged to the hobby about 4 years ago as my collector bug lay dormant (1992-2005) I will be the first to admit that I don't have all the answers.

Anyway, I like Dave's idea although don't exactly know where to find "out of business" card shop owners who are looking to bail on their inventory. Perhaps an auction house?

mtcards · June 18, 2009 2:13AM

Find a big guy that will act as a collector and loan shark the money out at 10% per week....Oh wait, the cash advance people already do that...

Nathaniel1960 · June 18, 2009 2:16AM

<< The best strategy is to not do it at all.Some could pull this off but I fear you could not based on the newbie questions you ask each day.Learn more about your hobby before attempting this.
Mike >>

OH SNAP!!!

I'd buy S&P 500 mutual funds with $4,500 and then forget about it for ten years. Take the $500 and satisfy your collecting interest. If you've got $5000 to spend on cards, you are not concerned with making a "fast buck"

Yankees001 · June 18, 2009 2:24AM

<< Anyway, I like Dave's idea although don't exactly know where to find "out of business" card shop owners who are looking to bail on their inventory. Perhaps an auction house? >>

Pure luck. I started collecting again, and 6 months later he said he was closing. He had over 1 million cards in storage. I offered him $600 for the Baseball cards, that was all I could spare (just got divorced and had house payments and many other things). He took it.

I found 2/3 of the 1961 Topps set, 36 1990 Score Sets, 50+ Jeter Rookies, 45+ A-Rod Rookies, and lets just say it worked out great.

Dave

lsutigers1973 · June 18, 2009 2:27AM

I posted a similar thread about a year ago and got beat down like I just said something about everyone's mommas.

Edit to add:

Don't buy large lots or collections from eBayers and plan on making a profit by selling them as singles.

Notice the winking smiley.

thenavarro · June 18, 2009 2:38AM

This will take legwork and the ability to ferret out real ones and honest sellers from fakes and fraudsters. Purchase low grade raw 1952 Topps Mickey Mantle 2nd year cards and turn around and have them graded by PSA. Then sell once they are graded.. You'll have to be in the right place at the right time but its possible.

RonBurgundy · June 18, 2009 2:41AM

I don't divulge how I make money in the hobby. Figure it out yourself.

thunderdan · June 18, 2009 2:43AM

<< "When you know a thing, to hold that you know it, and when you do not know a thing, to allow that you do not know it - this is knowledge."--Confucious

Mintacular is waxing poetic, so I thought I would oblige.

"As we know, There are known knowns. There are things we know we know. We also know there are known unknowns. That is to say we know there are some things we do not know. But there are also unknown unknowns, the ones we don't know we don't know."--Donald Rumsfeld.

Looks like Rummy just one-upped Conficious.

swartz1 · June 18, 2009 2:47AM

okay...maybe you dont like the OTB...here is another #5

buy cards like this on ebay...old flip...looks nice...and a good price...

MAz link

WinPitcher · June 18, 2009 2:52AM

I posted a similar thread about a year ago and got beat down like I just said something about everyone's mommas.

If I recall that was another Stan the man fiasco.

Steve

lsutigers1973 · June 18, 2009 2:56AM

<< If I recall that was another Stan the man fiasco. >>

You are correct.

Hi Steve!

WinPitcher · June 18, 2009 2:58AM

Hi Bill

I try...

Steve

thenavarro · June 18, 2009 2:59AM

Buy 4 or 5 of the best looking PSA 9 Michael Jordan 1986 Fleer cards that you can find. Crack and resubmit all at the same time.

Mike

bman90278 · June 18, 2009 2:59AM

100

KbKards · June 18, 2009 3:03AM

I heard you can make good money clearing landmines in Iraq. Is there anything I should know before I take the job, or should I just stay in bed.

TomGshotput · June 18, 2009 3:54AM

To clear this up, we're talking about taking home under $70 a week

Anyone who wants to should be able to come up with many different ways to make that kind of income, even with something as much of a niche hobby as baseball cards. The most important question is how many hours do you have to put in to earn that?

larryallen73 · June 18, 2009 4:16AM

You aren't talking an "investment" but rather making a JOB of selling cards. Why risk losing money for such a small return? Just go get an extra job.

ElToroLoco · June 18, 2009 4:25AM

Vintage is the way to go. I'd stay away from busting unopened packs. I recently purchased some 59 cellos, 66 Philly (FB) and a 68 FB a well as a couple 86 Fleer BK packs. I was a rush and I loved the break but for investment purposes, it didn't quite get the return. You may want to consider buying unpopened boxes, grading out the packs and reselling individually. The problem with it all is you are trying to do it within 3 months. The graded Mantle might be the way to go.

bman90278 · June 18, 2009 5:18AM

<< You aren't talking an "investment" but rather making a JOB of selling cards. Why risk losing money for such a small return? Just go get an extra job. >>

Don't you remember? Wasn't Mintacular the one who quit his job before he actually worked one day...all because it was too early in the morning to wake up???

NickM · June 18, 2009 5:29AM

Search eBay for auctions (especially lots) with good descriptions but lousy titles. Bid to a point that would allow you a nice, quick break/flip value.
If you win, break/flip.
Repeat the process.

I just made a nice score of 11 jersey cards of stars, an auto jersey rookie of a star, and 2 game floor cards - for under $10. The seller merely listed it as a big team lot in the title, but the auction had pictures and descriptions. I could treble my money on a break without a problem.

Nick

KbKards · June 18, 2009 6:50AM

Getting a job would fall under category option #5.

5) Other options I'm not considering

Altough I'm not sure if he means he hasn't considered it or won't consider it.

If you get a job you'll still find them time, and have more money, to play around with options 1-4.

RoarIn84 · June 18, 2009 6:57AM

buy a bunch of top name PSA 5 cards. most likely they are well centered and look like 9s and 10s but people got screwed on the grading due to a barely visible surface wrinkle. crack them and sell as raw. rake it in!!!!!

this, of course, is dishonest and NOT a serious suggestion!

Mintacular · June 18, 2009 7:24AM

Thank you to the posters who responded in earnest--some good ideas in there after sifting through the other backwash. And a big SCREW YOU to everyone else--I will conquer the card world with or without your advice. (They need a middle finger emoticon).

lsutigers1973 · June 18, 2009 7:40AM

<< Thank you to the posters who responded in earnest--some good ideas in there after sifting through the other backwash. And a big SCREW YOU to everyone else--I will conquer the card world with or without your advice. (They need a middle finger emoticon). >>

Wow! Really?

bigwilli · June 18, 2009 10:08AM

Mintacular...why do you insist on making things complicated . why cant you just come in here and ask "what will this card grade" . I see why
you are so disliked here by most . Stupid and pointless threads !

Mintacular · June 18, 2009 10:27AM

"What will this card grade?" is boring to me so I ignore those threads, which is why those who feel "What will this card grade?" is the cat's a** can gladly communicate with each other. In fact, I would encourage that dialogue, athough I currently find little interest in those discussons (And you will not hear a peep from me on that topic, in fact, I don't even open the thread to read it.)

I do not post on this board to win a popularity contest. I know 9/10 guys on here have been here since PSA was conceived in the early 90's and have been slinging cards for years and find my comments as "pointless." I guess you are that guy, and that's ok. What is not acceptable is slinging arrows at me for my "lack of knowledge." IMO. This hobby could die on vine if the younger generations are frozen out. Without newcomers the hobby may dwindle to irrelevance, a reality that I think all collectors can agree is not desirable. Oh well, that's my opinon about why the Republican Party is in a downward spiral. The big tent has become a small one. Wait a second, what was a writing about?

Back to my point, I am here as a self-acknowledged "NEWBIE" and also feel that serious card-grading experts are also at their core true hobbyists. Card grading and collecting are not mutually exclusive interests. If that is the case, if "grading" trumps the original interest in the cards themselves, then I think card-grading mindset is detrimental to the overall state of the hobby and misses the point.

However, I do believe the card grading industry can be complementary--not contradictory--to one's passion for the hobby.

WinPitcher · June 18, 2009 10:29AM

Mint didn't you know that when you create a thread people are forced to read it and reply?

Steve

Mintacular · June 18, 2009 10:42AM

I was not aware of that WinPitcher. But I was aware that you will be cattle prodded by Joe O. if you don't insult a newbie poster who asks "pointless" questions, and the responose must be layered with sarcasm, snide remarks, and emoticon silliness

WinPitcher · June 18, 2009 10:44AM

sarcasm, snide remarks

Nothing wrong with sarcasm and snide remarks

Steve

bigwilli · June 18, 2009 11:12AM

I was being sarcastic . Your threads are completely pointless most of time . Sorta like Taco Johnny and all his useless threads and replies. Wouldnt your
time be better spent finding a real job instead of trying to find a way to avoid finding ajob. Sportscards shouldnt be an investment unless you have the money to run a
card shop. Minimal profits are possible with individual cards but large profits are not.

MULLINS5 · June 18, 2009 11:15AM

1952 Mantle PSA 1 or 2

otwcards · June 18, 2009 11:23AM

<< If you had $5,000 to invest in cards today but had to pay it back in a short-time period (3 mos.) with 10% interest and you are also wanting to make $1K on your investment. In short, turning $5K into $6.5K >>

So, you're looking for us to inform you on how to use the hobby to turn an annualized profit of better than 120%?

Actually, it's not that difficult, but it's not something that can be written as a "rule." There are a wide range of vaiables and with a 90 day window, there's too little time to adjust when such variables come into play.

In any respect, with the right model and knowledge, it is a principle that is quite possible to accomplish. But then again, I've been at this for way too long and have learned that what works for one person may not work for another.

If anyone else has a secret formula that DOESN'T require effort and knowledge, I seriously doubt that they will be offering it up too rapidly.

zep33 · June 18, 2009 11:30AM

chocolate cake with onions and gravy

csmtampa · June 18, 2009 11:37AM

My secrets are in my head... Not to be shared with others

lsutigers1973 · June 18, 2009 11:42AM

<< Your threads are completely pointless most of time >>

To me your posts are always intelligently meaningless if that makes any sense. You seem like a very intelligent person but your threads and responses here have yet to serve any purpose. You say you came here to increase your knowledge of the hobby. Fine, but you do not have to post a pointless thread or reply to someone elses thread just to learn some of the finer points of the hobby.

There are many great forums that will allow you to learn as much as you possibly can about the hobby and none of them require you to post or try to antagonize other forum users. If you are into vintage, spend some time reading the posts on net54. I have only posted there a few times, but I read the threads all the time to gain knowledge of one area of the hobby where I am lacking knowledge.

Ahmanfan · June 18, 2009 11:50AM

maybe i'm in the minority but Mintacular at least posts about different topics- topics other than 'check out these worthless 1980's cards I paid $5 each to grade' or 'what grade will x card get' or 'screwed by ebay seller' (although those are useful).
John

DrJ · June 18, 2009 12:25PM

<< 

<< Your threads are completely pointless most of time >>

To me your posts are always intelligently meaningless if that makes any sense. You seem like a very intelligent person but your threads and responses here have yet to serve any purpose. You say you came here to increase your knowledge of the hobby. Fine, but you do not have to post a pointless thread or reply to someone elses thread just to learn some of the finer points of the hobby.

There are many great forums that will allow you to learn as much as you possibly can about the hobby and none of them require you to post or try to antagonize other forum users. If you are into vintage, spend some time reading the posts on net54. I have only posted there a few times, but I read the threads all the time to gain knowledge of one area of the hobby where I am lacking knowledge. >>

Are you serious?

nightcrawler · June 18, 2009 12:32PM

<< maybe i'm in the minority but Mintacular at least posts about different topics >>

I agree, and regardless of the many types of responses, his threads get lots of them.

JVette · June 18, 2009 1:41PM

Take your $5,000 and find a lot worth $15,000 and purchase it.
Then sell that lot for $10,000. You've doubled your investment.
Pretty simple to me.
- Jack

dontippet · June 18, 2009 1:52PM

<< If you had $5,000 to invest in cards today but had to pay it back in a short-time period (3 mos.) with 10% interest and you are also wanting to make $1K on your investment. In short, turning $5K into $6.5K.... >>

If I have this straight, you must make $500 not including your expenses just to break even. What happens if you lose $1K instead of making $1K? How would you pay the initial $5.5K back when you only have $4K not including any expenses you have? Sounds like a big risk to me. Like others said, I suggest getting a job. At minimum wage, you could get your $1,000 easily in a month.

Mintacular · June 18, 2009 2:15PM

I never said this was my situation. I set up a hypothetical to determine how one would go about making $ quick and was curious as to how it's been done. I never said one could live for 3 months on 1K.

However, in theory, if one could pull this off with 5K, and had 20K to invest, they could make 4K in 3 mos. (actually more, as the more cash in hand, the better rate you could get on a bulk/wholesale deal...) and in that scenario, one could "pay the bills."

Not to mention, any new business is lucky to break even after 1 year and so while one might think "Mintacular would only be breaking even!" is not considering the fact that selliing even-steven for now does not factor in that such a short-term investment is really setting me long term as my reputation and experience would yield higher return long term.

In terms of me "getting a job" I would rather do something that I love and is self-motivating than put up with a bunch of mind-control, corporate, dog-eat-dog, step your way to the top, sell out your values, wear a tie everyday, b.s. about your 401K around the water cooler, etc. I don't need to make 100K a year, 25K is just fine with me (for now).

lsutigers1973 · June 18, 2009 2:23PM

Well Minty, don't you think if it was as easy as you think it is that we would all be doing it?

Again you post another meaningless question and then you act like you already know everything and everyone that replies is wrong.

Robb · June 18, 2009 2:27PM

<< maybe i'm in the minority but Mintacular at least posts about different topics- topics other than 'check out these worthless 1980's cards I paid $5 each to grade'
John >>

Mintacular · June 18, 2009 2:41PM

I never said it was going to be easy--far from it. Anybody that wants to make it in the card industry, especially in this economy not to mention the decline in the industry by 500% since its peak in the 80s--is going to have to hustle and then some.

I still think it could be done and hold out it can be ethically. Bottom line--I have a very small window to chase my dream this year and it may be that a year from now I will realize: "How stupid!" but I don't mind that but if I don't try now it will never happen.

I don't think my replies suggest I know everything and that everyone is wrong. I will be first to admit that my knowledge is limited in many areas. As I've stated, my knowledge on the hobby is somewhere around a "5" and most regular posters on this board are probably an 8 or better (with qualifiers

)

Yes, I do think some people's logic/arguments are wrong and yes I do have strong opinions on certain sports topics. Oh well, I say some dumb stuff and have been wrong before and will be again--hopefully I learn from my mistakes and make less of them in the future but until then...

csmtampa · June 18, 2009 5:03PM

Well I can tell you that if you know your market, you can make a good profit. I bought $375 worth of autographs, and have just sold them all for a combined total of $874.00. If you know your market, and know where to get items, you can make a profit. Thats about all Im going to give up...so dont ask questions.

PS---Dont get me started on the 2 "

" autographs I picked up for $10 that last sold for $750 each!

$5,000 Investment in Cards: Best Strategy?

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